Q1 2025 Power Integrations Inc Earnings Call

Ewen: It afternoon, ladies and gentlemen, and welcome to the Power Integrations Inc. 1st quarter earnings call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a questioning-answer session. If at any time during this call, the earnings are immediate assistance, please press door 0 for the all-prader.

Speaker Change: I would now like to turn a conference call over to Joe Shiffler, Director of Investor Relations. Please go ahead.

Speaker Change: Thank you, Jenny. Good afternoon, everyone. Thanks for joining us. With me on the call are Balu Balakrishnan, Chairman and CEO of Power Integrations, and Sandeep Nayyar, our chief financial officer.

Speaker Change: During this call, we will refer to financial measures not calculated according to Gap. non-GAAP measures exclude stock-based compensation expenses, amortization of acquisition related intangible assets, and the tax effects of these items. A reconciliation of non-GAAP measures to our Gap results is included in today's press release.

Speaker Change: Our discussion today, including the Q&A session, will include forward-looking statements denoted by words like will, would, could, should, expect outlook, plan, forecast, estimate, anticipate, and similar expressions that look toward future events or performance.

Speaker Change: Such statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected or implied. Such risks are discussed in today's press release and in our most recent form, 10K, filed with the SEC on February 7, 2025.

Speaker Change: This calls the property of power integrations in any recording or re-broadcast is expressly prohibited without the written consent of power integrations [inaudible]

Now I'll turn it over to Balu.

Balu Balakrishnan: Thanks Joe, and good afternoon. Our Q1 results were on target with revenues in the middle of our guidance range, gross margin at the top end of the range, and non-GAAP EPS of 31 cents.

Balu Balakrishnan: Cash flow in the quarter was healthy and we are putting our strong balance sheet to work, buying back shares during recent market volatility.

Balu Balakrishnan: Bookings have been stable with no abnormal pull ins push outs or cancellation of orders.

Balu Balakrishnan: The proportion of short term orders relative to revenue is in line with historical norms.

Balu Balakrishnan: Distribution inventory is healthy after declining again in the March quarter.

Balu Balakrishnan: All of the factors, we typically consider when developing our revenue guidance point towards is seasonally higher second quarter with some nuances among the end market categories, which I will discuss in a moment.

Balu Balakrishnan: Revenues for the first quarter were $106 million up 15% year over year. All four end markets went up from a year ago led by the consumer and computer categories with growth of better than 20% each.

Balu Balakrishnan: In consumer we saw growth in Tvs and game consoles, reflecting recent design wins in those applications that would again basically in a switch and you know Max steel products.

Balu Balakrishnan: That includes the follow on TV design win in Q1 with MX to.

Balu Balakrishnan: Adding to three design wins at the same customer in the previous quarter.

Balu Balakrishnan: But the primary drivers of growth in consumer appliances, and air conditioning, which account for the bulk of our consumer category.

Balu Balakrishnan: Yeah.

Balu Balakrishnan: We had a better than seasonal quarter in appliances, reflecting the softer fourth quarter below normal channel inventories and perhaps some benefit from incentive programs in China.

Balu Balakrishnan: Also likely contributing to the strength in consumer was frontloading of appliance shipments to the U S from Asia had a status.

Balu Balakrishnan: Why does this affect is difficult to observe directly commentary by one of our appliance customers on their recent earnings calls suggests that it contributed to the upside in Q1.

Balu Balakrishnan: Our revenue guidance for the second quarter incorporates that correspondingly below seasonal outlook for consumer.

Balu Balakrishnan: In the computer category year over year growth was driven by several actually power with our Gan products that helping meet the highest power density requirements.

Balu Balakrishnan: Articulate artificial intelligence.

Power supplies.

Balu Balakrishnan: We also saw growth in notebooks as well as higher tablet revenues, reflecting the inventory correction that was underway in Q1 a year ago.

Balu Balakrishnan: The communications category grew slightly year over year, following our exit from China cell phones last year, our cell phone business is now dominated by non Chinese OEM branded accessories charges and to a lesser extent non OEM aftermarket brands.

Balu Balakrishnan: These customers value the innovation and dependable power supply depend.

Balu Balakrishnan: Dependable supply that power integrations as North Park.

Balu Balakrishnan: They also have roadmaps, calling for higher power and wider use of Gan, which in turn increases the need and the opportunity for our products.

Balu Balakrishnan: In the first quarter, we won one of our largest gan designs yet.

Balu Balakrishnan: Next generation access any charge at a major consumer device. We are scheduled to begin production later this year.

Balu Balakrishnan: Finally, industrial revenues grew 7% year over year.

Balu Balakrishnan: We expect industrial to be our fastest growing market this year.

Balu Balakrishnan: Driven largely by higher power design wins in high voltage DC transmission renewables and locomotives.

Balu Balakrishnan: We added our strong position.

Balu Balakrishnan: Added to our strong position in India as locomotive market in Q1 with a new design win for our scale to get drivers in our 6000 horsepower electric locomotives.

Balu Balakrishnan: We also have a healthy share of the metering opportunity in India.

Balu Balakrishnan: The government plans to deploy 250 million meters as part of that first to modernize the country's infrastructure.

Balu Balakrishnan: We expect Gan to play an increasing role there over time.

Balu Balakrishnan: Not just for its higher efficiency, but also its ability to withstand variations in good voltage.

Balu Balakrishnan: Which are common in India.

Balu Balakrishnan: Not only do our 750 volt Gan transistors accommodate voltage spikes better than equivalent rated silicon MOSFET.

Balu Balakrishnan: But as the only Gan supplier with devices slated at 900 volts, 12, 50 and 17 edibles.

Balu Balakrishnan: We also offer products with even greater safety margin for our customers and metering and three phase industrial applications.

Balu Balakrishnan: Automotive will also contribute to our industrial category. This year as we expand our customer base beyond China, where we now have more than two dozen designs on the road.

Balu Balakrishnan: Our first production shipments for a Japanese customer are scheduled to begin this quarter.

Balu Balakrishnan: Follow later in the year by designs at two European automakers.

Balu Balakrishnan: In the March quarter, we won our first game design in automotive.

Balu Balakrishnan: Drivetrain emergency power supply at a U S E V customer using at 900 volt in a switch product.

Balu Balakrishnan: We believe this design, which is scheduled to go into production later this year will be the first ever.

Balu Balakrishnan: Use of high voltage Gan technology in automotive and we are seeing increasing interest in Gan at customers looking for higher voltage capabilities efficiency and space savings.

Balu Balakrishnan: Looking ahead, our Q2 outlook is for revenues of $115 million, plus or minus $5 million.

Balu Balakrishnan: At the midpoint of the range that would be up 8% year over year and 9% sequentially.

Balu Balakrishnan: We expect sequential growth in the industrial computer and communications categories in Q2.

Balu Balakrishnan: While we anticipate seasonal strength in air conditioning, we expect overall consumer revenues to be sequentially lower following the unusually strong first quarter in appliances.

Balu Balakrishnan: Obviously the outlook for the second half of the year is highly dependent on the course of trade policy and we would not expect to be immune from any reduction in end demand related to tariffs.

Balu Balakrishnan: Fortunately channel inventories are at normal levels in terms of weeks and multi year lows in terms of dollars.

Balu Balakrishnan: At a minimum low channel inventories should cushion the effects of a trade related downturn.

Balu Balakrishnan: In the event of a benign outcome to the trade situation replenishment of inventories could become a priority for the supply chain.

Balu Balakrishnan: Most importantly, though the big picture trends of energy efficiency artificial intelligence electrification and a cleaner more modern power grid continues to create demand for innovative high voltage semiconductors, regardless of the macro and political turbulence.

Balu Balakrishnan: We had a meeting that need with current and future products as the leader leading innovator in the high voltage space.

Balu Balakrishnan: And now I'll turn it over to Sandeep for a review of the financials. Thanks.

Sandeep Nayyar: Thanks, Pablo and good afternoon, I will quickly recap the numbers and the outlook and then we will take questions.

Sandeep Nayyar: As usual I will focus on non-GAAP results, which are reconciled to GAAP in our press release.

Sandeep Nayyar: First quarter revenues were $106 million up 15% year over year and flat sequentially.

Sandeep Nayyar: I will speak to the sequential changes in each category.

Sandeep Nayyar: Consumer revenues increased about 20% sequentially driven by appliances air conditioning and T V.

Speaker Change: As <unk> noted the sequential growth partly reflects a rebound from the softer fourth quarter as well as low channel inventory, but also some of pattern front running of tariffs in appliances.

Speaker Change: The upside in consumer was offset by industrial with a sequential decrease of 3%.

Speaker Change: That was below our expectation driven by more pronounced seasonality in tools and home automation.

Speaker Change: Well as the timing of high volume programming high power, which we had expected to contribute in Q1, but is now beginning to ramp in Q2.

Speaker Change: Revenues from computer and communication category were down mid teens, and mid 20th respectively, largely driven by seasonality in tablets and cell phone Chargers.

We expect both categories to be up sequentially in Q2.

Speaker Change: Total channel inventory fell by half a week to 7.9 weeks as distribution sell through exceeded sell in by about $2 million.

Speaker Change: The drawdown was primarily related to the industrial market why because human inventory held steady remaining below normal in terms of weeks.

Speaker Change: Revenue mix for the quarter was 44% consumer.

Speaker Change: 34% industrial.

Speaker Change: 12% computer and 10% communications.

Speaker Change: non-GAAP gross margin for the first quarter was 55, 9% up 80 basis points from the prior quarter driven by the dollar yen exchange rate and more favorable mix driven by the strength in appliances.

Speaker Change: non-GAAP operating expenses were $43 $5 million coming in below our guidance driven by the timing of head count additions in R&D spending.

Speaker Change: The non-GAAP effective tax rate was 5%, resulting in non-GAAP earnings of 31 cents per diluted share.

Speaker Change: Inventories on the balance sheet remained elevated at 326 days.

Speaker Change: Assuming a relatively benign demand environment, our expectation continues to be that inventories would start tapering down in the second half of the year.

Speaker Change: Cash flow from operations was $26 million for the quarter, while capex was $6 million.

Speaker Change: Major uses of cash during the quarter included $12 million for dividends.

Speaker Change: $23 million for share repurchases.

$25 million remained on a on a rebate the repurchase authorization at the end of March.

Speaker Change: And the utilized all of that in April.

Speaker Change: Year to date, including April we have bought back 964000 shares or nearly 2% of our outstanding shares for $48 million.

Speaker Change: Our board has authorized another $50 million for repurchases subject to price volume thresholds specified by the board.

Speaker Change: Turning to the Q2 outlook, we expect revenues of $115 million, plus or minus $5 million.

Speaker Change: I expect non-GAAP gross margin to be approximately 55, 5% down slightly from the first quarter, reflecting a less favorable end market mix as well as higher input costs now flowing through our inventory.

Speaker Change: non-GAAP operating expenses for Q2 should be around $46 million up from $43 5 million in Q1, driven mainly by annual salary increases which took effect around the start of the second quarter as well as head count additions deferred from the prior quarter.

Speaker Change: Other income will decline compared to the first quarter driven by lower interest income.

Speaker Change: Cash and investments on the balance sheet fell to 289 million at quarter end from 300 million 300 million the prior quarter and its come down further after the April buyback activity.

Speaker Change: A reasonable estimate for other income would be a sequential decline of about half a million dollars.

Speaker Change: Weighted average share count will also decline as a result of buyback.

Speaker Change: While the pace of buyback activity through the balance of the quarter will have some impact.

Speaker Change: I would estimate a sequential decrease of around 700000 shares from Q1 to Q2.

Speaker Change: Finally, I expect our non-GAAP effective tax rate for the second quarter to be around 5%.

Speaker Change: And now operator, let's begin the Q&A.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Ladies and gentlemen, we will now begin the question and answer session.

Speaker Change: So do you have a question. Please press the star followed by the London Dutch Thompson.

Speaker Change: Should you wish to cancel your request. Please press star followed by the tail.

Speaker Change: We are using a speaker phone please lift an seth passing any case.

Speaker Change: Once again that is star one should you wish to ask a question.

Speaker Change: Our first question is from Ross Seymore from Deutsche Bank. Your line is now open.

Ross Seymore: Hi, guys. Thanks for let me ask a question.

Ross Seymore: I just wanted to get into a little bit of the stuff that you can control. Some of the design wins that you have you mentioned I think in industrial there was a slight push out of some ramp but taking.

Speaker Change: Taking all the tariff side out of the equation as best as possible are you seeing any changes in the ramp timing or volume for some of the incremental design wins that gave you such confidence in areas like high power within industrial et cetera.

Speaker Change: The high power delay is a totally unrelated to any of the policies are a odd even in general this was a very specific to a particular program.

Speaker Change: And it's going to ramp nicely in Q2. It was just a one quarter delay. So it has nothing to do with anything else. It's very specific to this particular customer.

Speaker Change: Overall, we have not seen any indication or any anything that are related to either tariffs or otherwise.

Speaker Change: Other than normal business, so its actually surprisingly a straightforward our bookings in both the Q4 and Q1 out of a book to Bill ratio was more than one.

Speaker Change: And it's very consistent with the guidance, we are giving you for Q2. So so far we haven't seen any trends that would stand out.

Ross Seymore: Got you. Thank you for that I guess Sandeep, you always do a good job and I know crystal balls are difficult to look into especially these days, but as far as the trends for your margins, whether it be gross margin or opex for the rest of the year or any big changes from where you had us looking for my last quarter.

Ross Seymore: No I think for the year I think I think ive been guiding this for about two quarters that about that we.

Ross Seymore: We should for the year or be 55, 5% approximately give or take four four non-GAAP gross margin and I think it's playing out pretty well.

Ross Seymore: So it kind of going to be steady from here, obviously as the revenue increases are especially towards Q3 and Q4. The operating margin gets the benefit as you know with the leverage we have in our model. So I think youll see the benefit of the operating margin going up.

Ross Seymore: Towards the Q3 Q4 timeframe.

Speaker Change: Gotcha. Thank you.

Ross Seymore: Thanks Ross.

Ross Seymore: Thank you.

Speaker Change: Churn is from David Williams from the Benchmark Company. Your line is now open.

David Williams: Hey, good afternoon. Thanks for taking my question I guess, maybe first.

Speaker Change: On the industrial segment, you talked about the strength in the automotive and some really nice design wins that are ramping there can you talk a little bit about just how youre getting those design wins, how they ramp and maybe just is that is that performing as well as you would have anticipated just kind of given your latter entrance into the automotive market generally.

David Williams: Thanks, David in terms of design wins, we are doing better than anticipated.

Speaker Change: But in terms of the demand forecast from the customers as you know they all come down since a year ago.

Speaker Change: Oh definitely two years ago, because of the projection for EV costs have come down now it doesn't affect us immediately because we are still in the early stages, but if you look at forecast for next year and the following year.

Speaker Change: It has come down having said that we are still feeling good that will be at a kind of 100 million kind of revenue by about 2029.

Speaker Change: But automotive.

Great.

Speaker Change: Perfect Great here are you.

Speaker Change: And in terms of just industrial overall.

Speaker Change: You've talked about it being the fastest growing this year can you talk maybe just a little bit about those driver he mentioned locomotives and other things, but just what gives you the confidence in industrial just kind of given that weakness more broadly and it sounds like it's very specific to your business is that is that fair.

Speaker Change: It is it is fair.

Speaker Change: No out of motive last year, we did the low single digit millions. This year, we'll do a high single digit millions next year will be in the low tens of millions.

Speaker Change: And that's still on track.

Speaker Change: And in terms of the high power revenue.

Speaker Change: We have won a number of designs, we had talked about some of them already even the one that gets now delayed to Q2 will not impact our overall revenue for the year Theyre just going to consume it between Q2 Q3 and Q4, so it really doesn't change our total revenue for the year. So that's for the high voltage.

Speaker Change: DC transmission system. These are systems that are that will be installed in.

Speaker Change: The North sea, the Baltic Sea and also in Japan.

Speaker Change: So the high power it is doing very well the other area. That's doing really well is locomotives. We have one number of designs are in India, specifically for electric look a lot of locomotives that will generate revenue. This year and renewables of course is doing very well the wind and solar.

Speaker Change: So that's what gives us the confidence now the.

Speaker Change: Some of the areas that were seasonally down in Q1 should come back is that things like tools and.

Speaker Change: SBA out of home and building automation they should come back.

Speaker Change: I think all of it all industrial is going to be the strongest growth this year.

Speaker Change: Okay. Thanks, so much for the color I appreciate it.

David Williams: You're welcome David.

Speaker Change: Thank you. Your next question is from tore Svanberg from Stifel. Your line is now open.

Tore Svanberg: Yes, thank you, but lose some deep and great job on the buyback.

Tore Svanberg: So my first question is on the consumer segment.

Tore Svanberg: It sounds like that's the only area where from an end product perspective, maybe there was some buy ahead of the tariffs.

Tore Svanberg: Could you just elaborate a little bit more on that I mean.

Tore Svanberg: Did did customers actually suggest to you that that was the case or is it sort of reflected in your orders.

Tore Svanberg: Sort of between this Q1 and Q2 period.

Tore Svanberg: Thought hey, this is bala are not they're not from the customer the customer that I haven't told us anything.

Tore Svanberg: We can clearly see the demand is better than we originally anticipated.

Tore Svanberg: Our comments are based on our earnings call comments made by a whirlpool.

Tore Svanberg: In the U S. They had made comments that.

Tore Svanberg: And they have seen a significant.

Tore Svanberg: A pull in of a large appliances major appliances into the U S before the tariffs.

Tore Svanberg: So that's where it comes from now we don't think that that's a significant factor. There are other factors why I think they were stronger in Q1, but we are thinking is in the order of a few million dollars additional revenue in Q1 because of the pull in related to tariffs.

Tore Svanberg: Yes, sorry, it was slightly ahead of what we were anticipating and that's why we're below say the few million dollars that we saw better and it was mainly in the major appliances and when you hear commentary from the others, who just quarterly maybe that was the reason.

Tore Svanberg: And by the way we.

Tore Svanberg: We have subtracted that from the Q2.

Tore Svanberg: Numbers, because we do anticipate a.

Tore Svanberg: Or at least we are projecting that they will be down by that amount and so far based on our backlog that appears to be this case.

Speaker Change: Very good that makes sense Mike.

Speaker Change: Second question is on automotive so you talked about that design win with a north American company for exhilarating, our supply 900, a bulk first of all is that an exclusive win meaning your sole source there.

Speaker Change: And related to that question.

Speaker Change: Are you starting just now that that customer is committed to launching that technology are you seeing other customers being interested in 900 bulk gander as well.

Speaker Change: Absolutely. So one of the reasons, we introduced 900 volt Gan is because with the 400 volt battery to do a power supply you really need 900 about 750 is not sufficient.

Speaker Change: And similarly, with the 800 volt battery at a 1700 volt.

Speaker Change: Our product suite product, which we have obviously.

Speaker Change: As far as this design goes yes, we have 100% of the design.

Speaker Change: And also there is a possibility that a European company will also adapt this design.

Speaker Change: Because it's really a kind of a.

Speaker Change: Our standard design for in Motors.

Speaker Change: Our platform design I should say, so we will see I believe a significant penetration of the 900 volt in the floor and wall systems and of course, we already have a significant furniture penetration at the 17 hundreds.

Speaker Change: With a 1700 volt part for the 800 volt systems. So we expect this to broadly be accepted by worldwide.

Speaker Change: In automotive.

Speaker Change: Sounds good congrats on that breakthrough that's great. Thank you.

Laurie: Thanks Laurie.

Speaker Change: Thank you. Our next question is from Christopher Rolland from Susquehanna. Your line is now open.

Speaker Change: Hey, guys. Thanks for the question I guess, yeah, I I certainly understand your comments around trade policy and it adds volatility for sure but how are you thinking about the second half now I think seasonality is up nicely in <unk> and then down in four Q.

Speaker Change: Hum How's the order book filling out a how are you thinking putting all the pieces together here.

Speaker Change: How things might actually trended in <unk> and <unk> the back half.

Speaker Change: Thanks for server and obviously it is hard to predict how the tariffs are going to impact the second half having said that so far we haven't seen anything unusual.

Speaker Change: We haven't seen that you know of course, it's too early to tell for Q3 in terms of backlog.

Speaker Change: But for this time.

Speaker Change: In the quarter.

Speaker Change: It looks normal for Q3.

Speaker Change: In terms of backlog growth and so on.

Speaker Change: So we haven't seen any any impact of tariffs so far.

Speaker Change: But you know who knows what's going to happen.

Speaker Change: Over time, and as you know the tariff situation changes.

Speaker Change: Every day, so it's really hard to predict.

Speaker Change: But I would say that without the impact of tariffs, we should do quite nicely. This year and now we have been thinking that we would have mid teens growth and that should still happen as long as status doesn't that impact that.

Speaker Change: Excellent thank you below and.

Speaker Change: Just as we think about inventories across the four segments, where are they normalized now I know you mentioned you thought industrial or grow the most some people are saying industrial inventories are lagging.

Speaker Change: Where are you on inventories across the four segments and are there any that might actually be ripe for replenishment.

Speaker Change: If you look at it our average inventory that seven nine so we're pretty much you know what I would say normal but within the different segments. The consumer segment is below the normal and so that's where I think the continued strength that we have seen there and even if there is.

Speaker Change: Some adjustment there would be more replenishment I would see in the consumer segment.

Okay.

David Williams: Excellent. Thank you Sandeep. Thank you guys.

Thanks Christopher.

Speaker Change: Thank you, ladies and gentlemen, once again should you wish to ask a question Carlo Press Star one.

Speaker Change: Your next question is from Gus Richard from Northland Capital Markets. Your line is now open.

Gus Richard: Yes, thanks for taking the question.

Gus Richard: Just thinking about the geographic demand you know I was curious.

Gus Richard: How the Oems in China are behaving and are you starting to see a shift in demand from India in particular, and maybe the other south East Asian.

Gus Richard: Countries as well.

Speaker Change: Hi, guys. This is <unk>.

Speaker Change: In terms of consumer behavior in China itself, you know, they're very pragmatic as you know they have a pragmatic during the Covid times. They are still pragmatic with the tariffs. They do what is right for their business.

Speaker Change: And they continue to use our product that are no tariffs on our product is as you know because.

Speaker Change: Because they have first of all they're not manufactured in the U S are manufactured in the in Japan as defined by China, where the diffusion occurs. So there is no impact there in terms of.

Speaker Change: The manufacturing getting transferred outside of China, that's not something that can change dramatically in a such a short time, obviously many of our end Oems are to.

Speaker Change: Beginning to shift out of China.

Speaker Change: That is certainly going to Vietnam and India.

Speaker Change: Is it part of our growth in India is actually basically manufacturing shifting there and I believe that will continue.

Speaker Change: You know.

Speaker Change: Even more vigorously going forward given all of these challenges we have had from a policy point of view.

Speaker Change: Got it.

Speaker Change: And then.

Speaker Change: Just in terms of currency.

Speaker Change: Yes, there's an impact of the dollar to the yen and the end of the year I am sorry, with all of the yen and the dollar to the euro.

Speaker Change: The impact on the gross margins and I was just wondering if you could remind us what that impact is temporary.

Speaker Change: <unk> swing in either of those currencies, what does that do to your gross margins.

Speaker Change: Yes, so mainly a gross margin the impact really comes from the yen because most of our wafers come from there a 10% change in yen.

Speaker Change: Pretty much.

Speaker Change: Impacts us about 100 to 120 basis points, depending on the direction and as you have seen that the movement of yet it has been quite a bit but considering the inventory that we have been getting you know we've been getting the benefit of the yen.

Speaker Change: And would have continued and we will start seeing the impact with the yen strengthening only after a year from now but as you see what happened in the last few days, it's kind of yen has weakened again. So I think they are getting about 200 basis points of benefit right now because we normally think you know the yen.

Speaker Change: To be somewhere in the 120 to 125 and it has been fluctuating anywhere between the 140 to $1 48 range.

Got it thanks for the update alright.

Speaker Change: That's it for me.

Speaker Change: Thanks, guys.

Speaker Change: Thank you. Your next question is from tore Svanberg from Stifel. Your line is now open.

Speaker Change: Yeah. Thank you just a quick follow up.

Speaker Change: So sandeep tunnel.

Speaker Change: Inventories totaled 49 weeks.

Speaker Change: Should we assume for Q2 do you think it will hold.

Speaker Change: Around this level.

Speaker Change: Yeah, right now I think we're thinking sell in and sell through should equal.

Speaker Change: Got it from seven nine for Q2 as well.

Speaker Change: Yeah.

Speaker Change: Thank you.

Speaker Change: Thanks, Laura.

Speaker Change: Okay.

Speaker Change: Thank you there are no further questions at this time I will now hand, the call back over to Joe Shiffler for any closing remarks.

Joe Shiffler: Alright, thanks, everyone for listening there'll be a replay of this call available on our Investor website, that's investors that power Dot com, Thanks, again and good afternoon.

Okay.

Speaker Change: Thank you ladies and gentleman that concludes our conference call for today. Thank you all for joining you may now disconnect your lines.

Please wait for conference will begin shortly.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.